AI’s Evolution in Finance from Regression Models to Reinforcement Learning

The financial sector, with its intricate web of data and rapidly changing conditions, has always been a natural breeding ground for technological innovation. In recent decades, the convergence of artificial intelligence (AI) and finance has led to transformative changes in the industry. This article looks into the complex world of artificial intelligence’s evolution in finance, following it from simple regression models to the cutting-edge realm of reinforcement learning. The Early Days: Regression Models Regression models dominated the early explorations of AI into finance. By using statistical techniques to financial data, these models provided the groundwork for quantitative finance. The theory…...